The U.S. Securities and Exchange Commission has charged Texas resident Nathan Fuller with orchestrating a fraudulent cryptocurrency trading scheme that raised approximately $12.3 million from about 150 investors through entities including Privvy Investments between October 2022 and mid 2024. According to the SEC's litigation release, Fuller marketed investment contracts that promised returns of 'over 40 to 50 percent' within 30 to 45 days, and in some cases 'guaranteed' returns of more than 100 percent in as little as 21 days. These claims significantly exceed even the most aggressive yield offerings seen during previous cycles of speculative crypto mania.
Regulators allege that Fuller told investors he had built a proprietary artificial intelligence powered high frequency arbitrage 'trading robot' that could generate extraordinary, low risk profits on crypto assets. However, the SEC complaint states that the vaunted AI trading robot 'did not operate as advertised' and instead of deploying most of the capital into legitimate cryptocurrency markets, Fuller allegedly misappropriated at least $6.2 million of investor funds for personal expenses including luxury goods, gambling trips, and a nearly $1 million home purchased for his ex-wife. Additionally, approximately $5.5 million was allegedly used to make payouts to earlier investors, creating what regulators describe as a Ponzi-style operation. The SEC alleges that only about $380,000, or roughly 3% of investor funds, was actually used for cryptocurrency trading without the advertised bots, and these trades generated no profits. When investors began to close in, Fuller filed for Chapter 7 bankruptcy in October 2024, listing more than $12.5 million in unsecured debts to defrauded investors.
The SEC's filing describes a pattern of forged account statements, fabricated documents, and false performance updates that were used to reassure investors and entice new victims. According to court documents cited by ChainCatcher, Fuller sold these products through several vehicles tied to Privvy Investments, part of a broader wave of AI-infused marketing that has swept both traditional and digital asset markets since 2023. The SEC notes this represents a continuation of enforcement actions against AI-branded crypto scams that use fake trading dashboards, doctored screenshots, and scripted chat group 'testimonials' to lure users into bogus platforms. To support the credibility of his claims, Fuller added a layer of false assurances about the safety of investor funds: a surety bond, FDIC insurance, and professional liability coverage, none of which existed. As withdrawal concerns grew, Fuller created fabricated account statements showing gains, referenced fictitious entities, and used artificial intelligence to generate a letter from a purported auditing firm claiming investor accounts were under review and would later be liquidated into a trust.
The bankruptcy filing did not provide the protection Fuller sought, as the U.S. Trustee Program investigated and found that he had concealed assets, falsified bankruptcy documents, and lied under oath. He was held in contempt of court during the proceedings and eventually admitted in court that Privvy Investments had operated as a Ponzi scheme and that he had fabricated documents to perpetuate it. On August 1, 2025, the Bankruptcy Court for the Southern District of Texas entered a default judgment against Fuller, leaving him personally liable for the full $12.5 million. U.S. Trustee Kevin Epstein stated that 'fraudsters seeking to whitewash their schemes will not find sanctuary in bankruptcy.' Creditors and investors may continue pursuing collection against him directly. The SEC has charged Fuller with violating the registration and antifraud provisions of federal securities laws and is seeking permanent injunctions, disgorgement, civil penalties and a ban on participating in securities offerings.
